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11-12-14, 15:31
http://www.straitstimes.com/archive/friday/premium/top-the-news/story/govt-scales-back-land-sales-tepid-market-20141205
Govt scales back land sales in tepid market
Sites on offer in first half of 2015 to yield fewer homes amid slowdown
Published on Dec 5, 2014 12:48 AM
By Rennie Whang
AS MORE evidence emerges of an across-the-board slowdown in the property market, the Government has scaled back site releases further, giving developers much less land to fight over next year.
The six confirmed sites on offer in the first half of 2015 will be able to accommodate 3,020 private homes - the lowest number since the first half of 2010 and 22.9 per cent down on the number generated by land released in this half of this year.
If reserve sites are included - these go up for tender once a developer lodges an acceptable initial offer - a total of 8,775 new homes could be accommodated - the lowest since the second half of 2009.
The Ministry of National Development, which handles the Government Land Sales (GLS) programme, said yesterday that the reduced supply will be enough to meet the country's needs.
Both the private and public property markets have been tepid. Latest figures from the Singapore Real Estate Exchange showed that resale Housing Board prices have fallen for 10 months in a row and are down 9.8 per cent from their peak in April last year.
Experts said the Government is guarding against an oversupply.
The residential sites on yesterday's confirmed list - these go on sale regardless of interest - are in suburban and city fringe areas such as Dundee Road in Queenstown and West Coast Vale.
Buying demand has been stronger in these areas. Suburban non-landed home prices fell 1.3 per cent in the first nine months of this year compared with an overall 2.5 per cent non-landed home price slide.
The moderation in land sales will allow the market to absorb unsold inventory, experts said.
A potential 78,402 new private homes will be completed between now and 2018, of which 64,001 are under construction, said Ms Chia Siew Chuin, director of research and advisory at Colliers International.
But buyers are staying away, with new home sales expected to come in at between 8,000 and 9,000 this year - the lowest since 2008 and well under last year's 17,590 transactions.
Only one executive condominium (EC) site - in Chua Chu Kang - is on the confirmed list for the first half of next year. It could yield 490 homes. "Demand for ECs has more or less been met," said Mr Ong Kah Seng, R'ST Research director.
EL Development managing director Lim Yew Soon said fewer GLS sites would benefit the firm, as it seeks to launch its 660-unit Symphony Suites condo in Yishun early next year.
"Reducing the number of sites would help equalise supply and demand in the market... Most developers with land banked, or unlaunched or unsold units will be happy; only developers with no stock might fear more competition for these sites."
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Govt scales back land sales in tepid market
Sites on offer in first half of 2015 to yield fewer homes amid slowdown
Published on Dec 5, 2014 12:48 AM
By Rennie Whang
AS MORE evidence emerges of an across-the-board slowdown in the property market, the Government has scaled back site releases further, giving developers much less land to fight over next year.
The six confirmed sites on offer in the first half of 2015 will be able to accommodate 3,020 private homes - the lowest number since the first half of 2010 and 22.9 per cent down on the number generated by land released in this half of this year.
If reserve sites are included - these go up for tender once a developer lodges an acceptable initial offer - a total of 8,775 new homes could be accommodated - the lowest since the second half of 2009.
The Ministry of National Development, which handles the Government Land Sales (GLS) programme, said yesterday that the reduced supply will be enough to meet the country's needs.
Both the private and public property markets have been tepid. Latest figures from the Singapore Real Estate Exchange showed that resale Housing Board prices have fallen for 10 months in a row and are down 9.8 per cent from their peak in April last year.
Experts said the Government is guarding against an oversupply.
The residential sites on yesterday's confirmed list - these go on sale regardless of interest - are in suburban and city fringe areas such as Dundee Road in Queenstown and West Coast Vale.
Buying demand has been stronger in these areas. Suburban non-landed home prices fell 1.3 per cent in the first nine months of this year compared with an overall 2.5 per cent non-landed home price slide.
The moderation in land sales will allow the market to absorb unsold inventory, experts said.
A potential 78,402 new private homes will be completed between now and 2018, of which 64,001 are under construction, said Ms Chia Siew Chuin, director of research and advisory at Colliers International.
But buyers are staying away, with new home sales expected to come in at between 8,000 and 9,000 this year - the lowest since 2008 and well under last year's 17,590 transactions.
Only one executive condominium (EC) site - in Chua Chu Kang - is on the confirmed list for the first half of next year. It could yield 490 homes. "Demand for ECs has more or less been met," said Mr Ong Kah Seng, R'ST Research director.
EL Development managing director Lim Yew Soon said fewer GLS sites would benefit the firm, as it seeks to launch its 660-unit Symphony Suites condo in Yishun early next year.
"Reducing the number of sites would help equalise supply and demand in the market... Most developers with land banked, or unlaunched or unsold units will be happy; only developers with no stock might fear more competition for these sites."
[email protected]